What is the expected rate of return on shares

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Reference no: EM131457880

(Common Stock Valuation): XYZ Inc. has an 11.5% equity return and retains 55% of its earnings for re-investment purposes. Recently it paid a dividend of $ 3.25, and the stock sells in $ 40 at the moment.

to. What is the growth rate of XYZ ??

B. What is the expected rate of return on XYZ shares?

C. If you require a 13% performance, should you invest in the firm?

Reference no: EM131457880

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